New debates on child tax credits

The Ministry of Finance (MF) is planning a change in the amount of the child tax credit, but as a permanent measure to take effect from 2027. This was stated by Finance Minister Galab Donev during a meeting of the budget committee.

"The Ministry of Finance is considering a change in the amount of the tax credit in the form of a permanent measure, aligned with the parameters of the 2027 Budget," Donev emphasized.

Why were the proposals rejected?

  • Administrative burden: According to the MF, a change in the middle of the year would burden employers, as the credit is already being used in advance.
  • Budgetary predictability: The department insists on a broad public discussion and coordination with the parameters for the next budget cycle.

The proposals by "We Continue the Change" for a double increase and by GERB-SDS for a 60% growth were not accepted by the committee. Asen Vasilev defended the idea, pointing out that the state has the resources due to the higher GDP, but the Ministry of Finance remains skeptical about hasty changes between the first and second reading.